Dubai - Deutsche Bank AG was fined $8.4 million by the Dubai Financial Services Authority for “serious breaches”.
The DFSA, which regulates the Dubai International Financial Centre, fined the Frankfurt-based bank for misleading it, failures in the lender’s internal governance and systems, client take-on and anti-money laundering processes, according to a statement posted on the regulator’s website Wednesday.
Deutsche Bank was aware that its Private Wealth Management business was operating in breach of DFSA requirements and didn’t take adequate steps to address the issue, the DFSA said. Bank employees also provided false information about the nature and scope of activities undertaken by the department, it said.
The DFSA is cracking down on misconduct within the financial centre to safeguard its position as a business hub. Over the past two years, the regulator has fined lenders including BNP Paribas SA and Lebanon’s FFA Private Bank. It’s also investigating alleged violations at ABN Amro Group NV, two people with knowledge of the matter said in March.
“The provision of false information to the DFSA is a serious matter,” DFSA Chief Executive Officer Ian Johnston said in the statement. “As demonstrated by the action against Deutsche Bank, the DFSA will take a robust stance where firms or individuals have breached these obligations.”
“Deutsche Bank is pleased to have reached an agreement with the Dubai Financial Services Authority and to have resolved this matter,” it said in an emailed statement.
Bloomberg